Fuso Pharmaceutical Industries,Ltd. (4538) AI Stock Analysis

• Market Cap: ¥19.61B
• Dividend Yield: 3.73%
• Average Volume (3M): 13.32K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.59
• Revenue Growth: 9.31%
• EPS Growth: -340.82%
• Country: JP
• Employees: 1,370
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 44.18
• Shares Outstanding: 9,451,169
• 10 Day Avg. Volume: 14,590
• 30 Day Avg. Volume: 13,316
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,432.00
• Price Target Upside: 7.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥2,369.00 ▲(4.45% Upside)

The overall score reflects strong technical analysis indicators that suggest bullish momentum, partially offset by financial performance challenges, particularly in cash flow management. The valuation is impacted by a negative P/E ratio, but the dividend yield offers some compensation for investors. The lack of recent earnings call guidance or corporate events leaves these areas neutral in the evaluation.

Fuso Pharmaceutical Industries,Ltd. Business Overview & Revenue Model

Company Description

Fuso Pharmaceutical Industries, Ltd. (4538) is a Japanese pharmaceutical company engaged in the research, development, manufacturing, and marketing of pharmaceutical products. The company focuses on providing high-quality injectables and other pharmaceutical solutions, serving both domestic and international markets. Fuso Pharmaceutical Industries is known for its commitment to innovation and quality in the healthcare sector, aiming to address various medical needs through its diverse product offerings.

How the Company Makes Money

Fuso Pharmaceutical Industries, Ltd. generates revenue primarily through the sale of its pharmaceutical products, particularly injectables. The company markets its products to hospitals, clinics, and other healthcare facilities, both in Japan and overseas. Revenue streams include direct sales of pharmaceutical products, partnerships, and collaborations with other pharmaceutical companies for distribution and co-development. The company may also earn income from licensing its technologies or products to other firms. Fuso Pharmaceutical Industries' emphasis on research and development helps it to continually innovate and expand its product portfolio, thereby maintaining a strong market presence and driving sales.

Fuso Pharmaceutical Industries,Ltd. Financial Statement Overview

Summary

Fuso Pharmaceutical Industries shows solid revenue growth and stable profitability margins. However, it struggles with cash flow management, as evidenced by a negative free cash flow and poor cash generation metrics. The balance sheet is robust with manageable debt levels, but improvements in cash management are necessary.

Income Statement

Fuso Pharmaceutical Industries has shown consistent revenue growth, with a 9.31% increase from 2024 to 2025. The gross profit margin for 2025 stands at 27.3%, indicating efficient cost management. The net profit margin improved to 4.59%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, are moderate at 6.82% and 10.39% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.54, reflecting prudent leverage levels. The return on equity is 7.11%, showing satisfactory returns on shareholders' investments. Equity ratio is healthy at 49.48%, indicating a strong equity base relative to total assets. However, the slight increase in total debt warrants attention for future leverage control.

Cash Flow

The cash flow statement shows challenges, with a negative free cash flow of -5.43 billion yen in 2025, marking a significant decline. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The free cash flow to net income ratio is also negative, underscoring the need for improved cash management practices.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	60.56B	55.41B	51.02B	49.63B	49.25B
Gross Profit	16.53B	13.52B	13.74B	13.40B	14.11B
EBITDA	6.29B	4.20B	4.63B	4.47B	4.79B
Net Income	2.78B	1.38B	1.60B	1.48B	1.61B
Balance Sheet
Total Assets	79.05B	75.80B	72.47B	69.33B	69.88B
Cash, Cash Equivalents and Short-Term Investments	6.26B	5.12B	8.01B	7.35B	7.07B
Total Debt	21.29B	12.72B	12.63B	12.09B	13.20B
Total Liabilities	39.94B	39.14B	36.82B	34.80B	36.19B
Stockholders Equity	39.11B	36.66B	35.65B	34.53B	33.68B
Cash Flow
Free Cash Flow	-5.43B	-2.96B	1.28B	2.01B	2.02B
Operating Cash Flow	-3.31B	627.00M	2.85B	3.50B	3.23B
Investing Cash Flow	-3.17B	-3.54B	-1.37B	-1.55B	-978.00M
Financing Cash Flow	7.62B	14.00M	-813.00M	-1.67B	-2.45B

Fuso Pharmaceutical Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2268.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4538, the sentiment is Positive. The current price of 2268 is above the 20-day moving average (MA) of 2167.10, above the 50-day MA of 2139.72, and below the 200-day MA of 2352.89, indicating a neutral trend. The MACD of 32.27 indicates Negative momentum. The RSI at 76.33 is Negative, neither overbought nor oversold. The STOCH value of 91.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4538.

Fuso Pharmaceutical Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4524	78 Outperform	¥8.99B	19.38		2.55%	2.90%	-21.60%
4539	70 Outperform	¥5.68B	14.38		3.25%	5.18%	―
4577	68 Neutral	¥36.83B	19.52		4.34%	8.07%	-45.20%
Sector *	65 Neutral	¥342.43B	8.69	-3.93%	2.47%	11.18%	-19.47%
4538	63 Neutral	¥19.61B	6.46		3.73%	9.31%	-340.82%
4512	49 Neutral	¥11.21B	159.96		0.98%	0.66%	-40.86%

Fuso Pharmaceutical Industries,Ltd. Corporate Events

Fuso Pharmaceutical Announces Executive Officer Changes

Fuso Pharmaceutical Industries, Ltd. announced changes in its executive officer positions, effective September 1, 2025, following a Board of Directors meeting. These personnel changes involve reassignments within the company’s production division, impacting the management of its Ibaraki and Okayama factories, which may influence operational efficiencies and strategic positioning in the industry.

Fuso Pharmaceutical Announces Executive Personnel Changes

Fuso Pharmaceutical Industries, Ltd. announced personnel changes in its executive officer team following a Board of Directors meeting on June 25, 2025. The changes include the appointment of new executive officers and the reappointment of six current members, indicating a strategic move to strengthen its leadership structure.

Fuso Pharmaceutical Appeals Patent Infringement Ruling

Fuso Pharmaceutical Industries, Ltd. has filed an appeal with the Supreme Court following a judgment in a patent infringement lawsuit involving their oral antipruritus agent, Nalfurafine Hydrochloride OD Tablets. The Intellectual Property High Court had previously ruled in favor of Toray Industries, Inc., ordering Fuso to pay over 7 billion yen in damages. The company maintains that their product does not infringe on Toray’s patent rights and is seeking a reversal of the decision.

Fuso Pharmaceutical Maintains Financial and Dividend Forecasts Amid Legal Challenges

Fuso Pharmaceutical Industries, Ltd. announced that there will be no revisions to its financial results forecast for the fiscal year ending March 31, 2026, despite a recent patent infringement lawsuit. The company also confirmed that there will be no changes to its dividend forecast, signaling stability in its financial outlook and commitment to shareholder returns.

Fuso Pharmaceutical Secures Overdraft Agreement Amid Legal Dispute

Fuso Pharmaceutical Industries, Ltd. has entered into a special overdraft agreement with Sumitomo Mitsui Banking Corporation to secure mid- to long-term liquidity following a court ruling against them in a patent infringement lawsuit. This agreement, which is unsecured and has a contract limit of 8 billion yen, is intended to address financial obligations resulting from the judgment, although it will not affect the company’s financial forecast for the fiscal year ending March 31, 2026.

Fuso Pharmaceutical Adjusts Financial Results Due to Litigation Losses

Fuso Pharmaceutical Industries, Ltd. announced corrections to its financial results for the fiscal year ended March 31, 2025, due to a provision for litigation losses related to a patent infringement lawsuit. This adjustment significantly impacts the company’s financial statements, resulting in an extraordinary loss for fiscal year 2024 and necessitating revisions to key financial documents.

Fuso Pharmaceutical Faces Partial Setback in Patent Infringement Case

Fuso Pharmaceutical Industries, Ltd. announced that the Intellectual Property High Court partially upheld a patent infringement claim by Toray Industries, Inc. regarding their product, Nalfurafine Hydrochloride OD Tablets. The court ordered Fuso to pay damages, impacting their financial results for the fiscal year ending March 2025. Fuso plans to appeal the decision to the Supreme Court, although their financial forecast for the fiscal year ending March 2026 remains unchanged.

Fuso Pharmaceutical Reports Strong Financial Growth and Increased Dividends

Fuso Pharmaceutical Industries, Ltd. reported a significant improvement in its financial performance for the fiscal year ended March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 9.3% increase in net sales and over 100% growth in operating and ordinary profits, indicating strong operational efficiency and market demand. The company also announced an increase in annual dividends per share, reflecting its robust financial health and commitment to shareholder returns.

Fuso Pharmaceutical Announces Leadership Changes to Drive Growth

Fuso Pharmaceutical Industries, Ltd. announced a change in its leadership structure, appointing Mikihiro Toda as a new Representative Director to enhance management efficiency and support its long-term growth strategy. Additionally, Yukari Ikeno has been nominated as a candidate for Outside Director, while Minoru Sudo will retire from his position as Outside Director.

Fuso Pharmaceutical Reports Strong 2025 Financial Performance Amid Future Challenges

Fuso Pharmaceutical Industries reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 9.3% rise in net sales and over 100% growth in operating and ordinary profits, reflecting strong operational efficiency and market demand. Despite these gains, the forecast for the next fiscal year anticipates a slowdown in profit growth, indicating potential challenges ahead.